Refining and petrochemical complex breaks ground in Fujian

03 Dec, 2024

Aramco, SINOPEC, and FPCL break ground on major integrated refining and petrochemical Complex in Fujian

At the groundbreaking ceremony: Aramco Downstream President Mohammed Y. Al Qahtani (L8), Aramco Executive Vice President of Products & Customers Yasser Mufti (R2), Aramco Asia President Saleh Zaid (L3), Secretary of the CPC Fujian Provincial Committee and Chairman of NPC Standing Committee Zhou Zuyi (R8), Chairman and Secretary of the Leading Party Member Group of Sinopec Group Ma Yongsheng (R7), President and Deputy Secretary of the Leading Party Members Group of Sinopec Group Zhao Dong (L7), and Chairman of Fujian Petrochemical Company Limited Zhang Xiguo (R1).

Aramco, one of the world’s leading integrated energy and chemicals companies, alongside China Petroleum & Chemical Corporation (SINOPEC) and Fujian Petrochemical Company Limited (FPCL), has officially broken ground on a new integrated refining and petrochemical complex in Fujian Province, China.

This ambitious project is set to enhance chemical output and strengthen the region’s petrochemical capabilities.

The complex is designed to feature a robust capacity of 16 million tonnes per year for oil refining, equivalent to 320,000 barrels per day.

Additionally, it will include a 1.5 million tonnes per year ethylene unit and a two million tonnes capacity for paraxylene and its derivatives. A crucial component of the facility will be a 300,000 tonnes crude oil terminal, which is expected to bolster operational efficiency and supply chain logistics.

Upon completion, the facility is projected to supply approximately five million tonnes per year of feedstock to the Gulei Petrochemical Base, significantly contributing to local and regional chemical production demands.

The project is anticipated to be fully operational by the end of 2030, marking a pivotal milestone in the collaboration between these major industry players.

FPCL will hold a 50 per cent stake in the venture, while Aramco and SINOPEC will each possess a 25 per cent stake, reflecting a balanced partnership aimed at maximising output and efficiency.

Mohammed Y. Al Qahtani, Aramco’s Downstream President, expressed enthusiasm about the groundbreaking, stating: “Building on our strong relationships with both SINOPEC and Fujian Petrochemical, today’s groundbreaking further expands Aramco’s growing downstream investment portfolio in China.”

He emphasised that Aramco plans to supply over one million barrels per day of crude oil to these high chemical conversion assets in China, reinforcing its commitment as a reliable partner in the country’s development.

Ma Yongsheng, Chairman of SINOPEC, echoed this sentiment by highlighting the strategic importance of this collaboration.

He stated: “Both SINOPEC and Aramco are committed to promoting the high-quality development of the petroleum and petrochemical industry.”

He further noted that Aramco’s involvement ensures a long-term supply of reliable and competitive feedstock for the project, contributing positively to the growth of the Gulei Petrochemical Base.

This project not only represents a significant investment in infrastructure but also aligns with broader goals of enhancing domestic circulation within China’s economy while adhering to dual circulation strategies.

As global demand for petrochemicals continues to rise, this integrated complex positions itself as a vital contributor to meeting these needs effectively.